India is gearing up to make significant strides with its recently established trade pact with the European Free Trade Association (EFTA), comprising Switzerland, Iceland, Norway, and Liechtenstein. The Trade and Economic Partnership Agreement (TEPA), signed earlier this year, is positioned to potentially boost 99.6% of India's exports, alongside promising to draw investments upward of $100 billion as the government reported on Saturday from discussions around the pact.
During the recent diplomatic trip to Norway, Sunil Barthwal, Secretary of the Department of Commerce, emphasized the incredible opportunities the TEPA could provide. His engagement with Norwegian officials, including State Secretary Tomas Norvoll alongside key ministers from Norway, was focused on promoting trade and enhancing investment ties. This visit marks another step forward for India as it seeks to solidify its economic status from currently being the fifth-largest economy to aiming for the third-largest globally within the next few years.
The TEPA talks underline the current global economic dynamics where strategies revolve around bolstering export markets and cementing bilateral ties. With India’s exports benefiting from preferential access, especially across EFTA nations, Barthwal explored avenues not just to market Indian goods but also to facilitate the mobility of Indian professionals across these economic territories.
Among the areas discussed, India’s seafood export sector stood out. Over the past decade, this sector has seen tremendous growth, effectively doubling its market value. With approximately 500 EU-approved firms, India now seeks to leverage its position as a major supplier of shrimp and squid to Europe. This emphasis aligns with the trade agreement's objective of opening new markets and streamlining trade processes, creating higher levels of export potential.
The backdrop for this trade agreement is significant. By offering tariff concessions covering 92.2% of its tariff lines, the EFTA will provide extensive access, covering 100% of non-agricultural products and additional alleviation for processed agricultural goods. This would provide much-needed market access for many Indian products. Conversely, India has committed to offer 82.7% of its tariff lines, encapsulating 95.3% of EFTA’s exports, securing commitments across 114 sectors with 105 sub-sectors for future collaboration.
This trade pact also integrates well with India’s “Make in India” initiative, aimed at fostering manufacturing growth and job creation. The TEPA is anticipated to generate numerous direct jobs targeting the nation’s youthful workforce, enhancing vocational and technical training facilities over the next 15 years, as clarified by government sources.
Barthwal's meetings feature collaboration discussions with numerous business stakeholders from diverse sectors such as renewable energy, textiles, seafood, information technology, and green hydrogen. These collaborations reflect the current market trends demanding sustainable practices and innovations, which will likely serve both economies' growth.
Overall, the TEPA signifies more than just numbers; it's about establishing long-lasting business relationships and enhancing economic collaborations between India and EFTA countries. Barthwal's talks represent the beginning steps toward implementing the agreement, building foundations for future engagements, and doing so within the framework of mutual respect and beneficial outcomes.
This diplomatic endeavor highlights India’s proactive approach to securing its position on the global economic stage, ensuring not only growth but also resilience as it navigates the post-pandemic world and the broader geopolitical climate. Through initiatives like the TEPA, India’s narrative as both a growing economy and competitive export nation continues to gain momentum.
